Residential Construction Contract Template for Indonesia

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Key Requirements PROMPT example:

Residential Construction Contract

"I need a Residential Construction Contract for building a luxury villa in Bali, Indonesia, with a contract value of USD 2.5 million and construction period from March 2025 to December 2025, including specific provisions for local building permits and traditional architectural elements."

Document background
The Residential Construction Contract serves as a fundamental legal instrument for managing residential construction projects in Indonesia. This document is essential when a property owner engages a contractor to construct a residential property, whether it's a single-family home, villa, or residential complex. It encompasses all crucial aspects of the construction process, including detailed specifications, payment structures, timelines, and quality requirements. The contract must comply with Indonesian construction laws, particularly Law No. 2 of 2017 on Construction Services and Law No. 1 of 2011 on Housing and Settlement Areas, while also adhering to local building codes and permit requirements. It includes provisions for risk allocation, dispute resolution, and warranty obligations, making it suitable for both small-scale residential projects and larger development initiatives.
Suggested Sections

1. Parties: Identification of the owner/client and the contractor, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including property details and purpose of construction

3. Definitions: Definitions of key terms used throughout the contract

4. Scope of Work: Detailed description of construction work to be performed, including general specifications and standards

5. Contract Sum and Payment Terms: Total contract value, payment schedule, and payment conditions

6. Timeline and Completion: Project schedule, completion date, and milestones

7. Contractor's Obligations: Key responsibilities including quality standards, materials, workforce, and compliance with regulations

8. Owner's Obligations: Owner's responsibilities including site access, permits, and approvals

9. Variations and Changes: Process for handling changes to scope, specifications, or contract terms

10. Quality and Inspections: Quality standards, inspection procedures, and acceptance criteria

11. Warranties and Defects: Warranty terms, defects liability period, and rectification procedures

12. Insurance and Indemnity: Required insurance coverage and indemnification obligations

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration

15. Governing Law: Specification of Indonesian law as governing law and jurisdiction

Optional Sections

1. Force Majeure: Provisions for unforeseen circumstances preventing contract performance - include if project is in area prone to natural disasters

2. Environmental Protection: Specific environmental protection measures - include if project has significant environmental impacts

3. Security of Payment: Additional payment security mechanisms like bank guarantees - include for high-value contracts

4. Intellectual Property: IP rights provisions - include if custom designs or innovative construction methods are involved

5. Confidentiality: Confidentiality obligations - include if sensitive information is involved

6. Local Community Relations: Provisions for managing community impact - include in densely populated areas

7. Staging and Storage: Requirements for material storage and staging - include if site has limited space

8. Utilities and Services: Provisions for temporary utilities during construction - include if site lacks existing connections

Suggested Schedules

1. Schedule 1 - Construction Drawings: Detailed architectural and engineering drawings

2. Schedule 2 - Technical Specifications: Detailed material and construction specifications

3. Schedule 3 - Bill of Quantities: Itemized list of materials and works with quantities and prices

4. Schedule 4 - Construction Schedule: Detailed timeline with milestones and critical path

5. Schedule 5 - Payment Schedule: Detailed breakdown of payment installments and milestones

6. Schedule 6 - Required Permits and Approvals: List of necessary permits and responsibilities for obtaining them

7. Schedule 7 - Quality Assurance Plan: Detailed quality control procedures and standards

8. Appendix A - Site Plan: Detailed site layout and boundaries

9. Appendix B - Insurance Requirements: Specific insurance types and coverage amounts required

10. Appendix C - Form of Bank Guarantee: Template for required bank guarantees or performance bonds

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate

Residential Development

Architecture

Engineering

Building Materials

Construction Management

Property Development

Insurance

Banking and Finance

Relevant Teams

Legal

Construction

Project Management

Real Estate

Procurement

Risk and Compliance

Finance

Operations

Quality Assurance

Technical Services

Property Management

Contract Administration

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Property Developer

Architect

Civil Engineer

Quantity Surveyor

Risk Manager

Compliance Officer

Procurement Manager

Site Supervisor

Building Inspector

Real Estate Manager

Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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